https://www.engineeringnews.co.za

Consol mulls coal unit sale, spin-out

1st February 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – US fossil fuels producer Consol Energy is considering selling or spinning out its coal business as early as this year, the Pittsburgh-based energy company announced in its fourth-quarter earnings release on Tuesday.

The plan is another step in the company’s strategy to separate its coal business from its natural gas operations, which had seen Consol spin out some of its coal assets in 2015 to form CNX Coal Resources.

“We think there may be a market opportunity to achieve a sale of the coal business on favourable terms or, alternatively, to effect a spin-off as our leverage ratio comes down to a level that allows each business to stand on its own,” stated Consol CFO David Khani.

Consol expects to monetise between $400-million and $600-million of assets in 2017. The company states that 75% of the total 2017 gas output has been hedged.

Consol reported a fourth-quarter loss of $306-million, or $1.33 a share, down from a profit of $34.3-million, or $0.13 a share, during the year-earlier quarter.

For the full year, the company lost $848-million, or $3.70 a share, compared with a loss of $374.9-million in 2015.

During the fourth quarter, the average sales prices that Consol received for its natural gas improved to $2.22 per thousand cubic feet, up from $1.83 per thousand cubic feet a year ago.

Consol’s NYSE-listed stock closed down 7.43% on Tuesday at $16.94 apiece.

Edited by Creamer Media Reporter

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.298 0.411s - 156pq - 2rq
Subscribe Now